That made for the type of tight vertical integration between application software, operating systems, and hardware devices that Jobs liked.
Jobs’s desire for end-to-end control also made him allergic to proposals that Apple license the Macintosh operating system to other office equipment manufacturers and allow them to make Macintosh clones. The new and energetic Macintosh marketing director Mike Murray proposed a licensing program in a confidential memo to Jobs in May 1982. “We would like the Macintosh user environment to become an industry standard,” he wrote. “The hitch, of course, is that now one must buy Mac hardware in order to get this user environment. Rarely (if ever) has one company been able to create and maintain an industry-wide standard that cannot be shared with other manufacturers.” His proposal was to license the Macintosh operating system to Tandy. Because Tandy’s Radio Shack stores went after a different type of customer, Murray argued, it would not severely cannibalize Apple sales. But Jobs was congenitally averse to such a plan. His approach meant that the Macintosh remained a controlled environment that met his standards, but it also meant that, as Murray feared, it would have trouble securing its place as an industry standard in a world of IBM clones.
Machines of the Year
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As 1982 drew to a close, Jobs came to believe that he was going to be Time’s Man of the Year. He arrived at Texaco Towers one day with the magazine’s San Francisco bureau chief, Michael Moritz, and encouraged colleagues to give Moritz interviews. But Jobs did not end up on the cover. Instead the magazine chose “the Computer” as the topic for the year-end issue and called it “the Machine of the Year.”
Accompanying the main story was a profile of Jobs, which was based on the reporting done by Moritz and written by Jay Cocks, an editor who usually handled rock music for the magazine. “With his smooth sales pitch and a blind faith that would have been the envy of the early Christian martyrs, it is Steven Jobs, more than anyone, who kicked open the door and let the personal computer move in,” the story proclaimed. It was a richly reported piece, but also harsh at times—so harsh that Moritz (after he wrote a book about Apple and went on to be a partner in the venture firm Sequoia Capital with Don Valentine) repudiated it by complaining that his reporting had been “siphoned, filtered, and poisoned with gossipy benzene by an editor in New York whose regular task was to chronicle the wayward world of rock-and-roll music.” The article quoted Bud Tribble on Jobs’s “reality distortion field”
and noted that he “would occasionally burst into tears at meetings.” Perhaps the best quote came from Jef Raskin. Jobs, he declared, “would have made an excellent King of France.”
To Jobs’s dismay, the magazine made public the existence of the daughter he had forsaken, Lisa Brennan. He knew that Kottke had been the one to tell the magazine about Lisa, and he berated him in the Mac group work space in front of a half dozen people.
“When the Time reporter asked me if Steve had a daughter named Lisa, I said ‘Of course,’” Kottke
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recalled. “Friends don’t let friends deny that they’re the father of a child. I’m not going to let my friend be a jerk and deny paternity. He was really angry and felt violated and told me in front of everyone that I had betrayed him.”
But what truly devastated Jobs was that he was not, after all, chosen as the Man of the Year. As he later told me:
Time decided they were going to make me Man of the Year, and I was twenty-seven, so I actually cared about stuff like that. I thought it was pretty cool. They sent out Mike Moritz to write a story. We’re the same age, and I had been very successful, and I could tell he was jealous and there was an edge to him. He wrote this terrible hatchet job. So the editors in New York get this story and say, “We can’t make this guy Man of the Year.” That really hurt. But it was a good lesson. It taught me to never get too excited about things like that, since the media is a circus anyway. They FedExed me the magazine, and I remember opening the package, thoroughly expecting to see my mug on the cover, and it was this computer sculpture thing. I thought, “Huh?”
And then I read the article, and it was so awful that I actually cried.
In fact there’s no reason to believe that Moritz was jealous or that he intended his reporting to be unfair.
Nor was Jobs ever slated to be Man of the Year, despite what he thought. That year the top editors (I was then a junior editor there) decided early on to go with the computer rather than a person, and they commissioned, months in advance, a piece of art from the famous sculptor George Segal to be a gatefold cover image.
Ray Cave was then the magazine’s editor. “We never considered Jobs,” he said. “You couldn’t personify the computer, so that was the first time we decided to go with an inanimate object. We never searched around
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for a face to be put on the cover.”
Apple launched the Lisa in January 1983—a full year before the Mac was ready—and Jobs paid his $5,000 wager to Couch. Even though he was not part of the Lisa team, Jobs went to New York to do publicity for it in his role as Apple’s chairman and poster boy.
He had learned from his public relations consultant Regis McKenna how to dole out exclusive interviews in a dramatic manner. Reporters from anointed publications were ushered in sequentially for their hour with him in his Carlyle Hotel suite, where a Lisa computer was set on a table and surrounded by cut flowers. The publicity plan called for Jobs to focus on the Lisa and not mention the Macintosh, because speculation about it could undermine the Lisa. But Jobs couldn’t help himself. In most of the stories based on his interviews that day—in Time, Business Week, the Wall Street Journal, and Fortune—the Macintosh was mentioned. “Later this year Apple will introduce a less powerful, less expensive version of Lisa, the Macintosh,” Fortune reported. “Jobs himself has directed that project.” Business Week quoted him as saying, “When it comes out, Mac is going to be the most incredible computer in the world.” He also admitted that the Mac and the Lisa would not be compatible. It was like launching the Lisa with the kiss of death.
The Lisa did indeed die a slow death. Within two years it would be discontinued. “It was too expensive, and we were trying to sell it to big companies when our expertise was selling to consumers,” Jobs later said.
But there was a silver lining for Jobs: Within months of Lisa’s launch, it became clear that Apple had to pin its hopes on the Macintosh instead.
Let’s Be Pirates!
As the Macintosh team grew, it moved from Texaco Towers to the main Apple buildings on Bandley
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Drive, finally settling in mid-1983 into Bandley 3. It had a modern atrium lobby with video games, which Burrell Smith and Andy Hertzfeld chose, and a Toshiba compact disc stereo system with MartinLogan speakers and a hundred CDs. The software team was visible from the lobby in a fishbowl-like glass enclosure, and the kitchen was stocked daily with Odwalla juices. Over time the atrium attracted even more toys, most notably a Bösendorfer piano and a BMW motorcycle that Jobs felt would inspire an obsession with lapidary craftsmanship.
Jobs kept a tight rein on the hiring process. The goal was to get people who were creative, wickedly smart, and slightly rebellious. The software team would make applicants play Defender, Smith’s favorite video game. Jobs would ask his usual offbeat questions to see how well the applicant could think in unexpected situations. One day he, Hertzfeld, and Smith interviewed a candidate for software manager who, it became clear as soon as he walked in the room, was too uptight and conventional to manage the wizards in the fishbowl. Jobs began to toy with him mercilessly.
“How old were you when you lost your virginity?” he asked.
The candidate looked baffled. “What did you say?”
“Are you a virgin?” Jobs asked. The candidate sat there flustered, so Jobs changed the subject. “How many times have you taken LSD?” Hertzfeld recalled,
“The poor guy was turning varying shades of red, so I tried to change the subject and asked a straightforward technical question.” But when the candidate droned on in his response, Jobs broke in. “Gobble, gobble, gobble, gobble,” he said, cracking up Smith and Hertzfeld.
“I guess I’m not the right guy,” the poor man said as he got up to leave.
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For all of his obnoxious behavior, Jobs also had the ability to instill in his team an esprit de corps. After tearing people down, he would find ways to lift them up and make them feel that being part of the Macintosh project was an amazing mission. Every six months he would take most of his team on a two-day retreat at a nearby resort.
The retreat in September 1982 was at the Pajaro Dunes near Monterey. Fifty or so members of the Mac division sat in the lodge facing a fireplace. Jobs sat on top of a table in front of them. He spoke quietly for a while, then walked to an easel and began posting his thoughts.
The first was “Don’t compromise.” It was an injunction that would, over time, be both helpful and harmful. Most technology teams made trade-offs. The Mac, on the other hand, would end up being as
“insanely great” as Jobs and his acolytes could possibly make it—but it would not ship for another sixteen months, way behind schedule. After mentioning a scheduled completion date, he told them, “It would be better to miss than to turn out the wrong thing.” A different type of project manager, willing to make some trade-offs, might try to lock in dates after which no changes could be made. Not Jobs. He displayed another maxim: “It’s not done until it ships.”
Another chart contained a koōan-like phrase that he later told me was his favorite maxim: “The journey is the reward.” The Mac team, he liked to emphasize, was a special corps with an exalted mission. Someday they would all look back on their journey together and, forgetting or laughing off the painful moments, would regard it as a magical high point in their lives.
At the end of the presentation someone asked whether he thought they should do some market research to see what customers wanted. “No,” he
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replied, “because customers don’t know what they want until we’ve shown them.” Then he pulled out a device that was about the size of a desk diary. “Do you want to see something neat?” When he flipped it open, it turned out to be a mock-up of a computer that could fit on your lap, with a keyboard and screen hinged together like a notebook. “This is my dream of what we will be making in the mid-to late eighties,” he said. They were building a company that would invent the future.
For the next two days there were presentations by various team leaders and the influential computer industry analyst Ben Rosen, with a lot of time in the evenings for pool parties and dancing. At the end, Jobs stood in front of the assemblage and gave a soliloquy.
“As every day passes, the work fifty people are doing here is going to send a giant ripple through the universe,” he said. “I know I might be a little hard to get along with, but this is the most fun thing I’ve done in my life.” Years later most of those in the audience would be able to laugh about the “little hard to get along with”
episodes and agree with him that creating that giant ripple was the most fun they had in their lives.
The next retreat was at the end of January 1983, the same month the Lisa launched, and there was a shift in tone. Four months earlier Jobs had written on his flip chart: “Don’t compromise.” This time one of the maxims was “Real artists ship.” Nerves were frayed.
Atkinson had been left out of the publicity interviews for the Lisa launch, and he marched into Jobs’s hotel room and threatened to quit. Jobs tried to minimize the slight, but Atkinson refused to be mollified. Jobs got annoyed.
“I don’t have time to deal with this now,” he said. “I have sixty other people out there who are pouring their hearts into the Macintosh, and they’re waiting for me to start the meeting.” With that he brushed past Atkinson to go address the faithful.
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Jobs proceeded to give a rousing speech in which he claimed that he had resolved the dispute with McIntosh audio labs to use the Macintosh name. (In fact the issue was still being negotiated, but the moment called for a bit of the old reality distortion field.) He pulled out a bottle of mineral water and symbolically christened the prototype onstage. Down the hall, Atkinson heard the loud cheer, and with a sigh joined the group. The ensuing party featured skinny-dipping in the pool, a bonfire on the beach, and loud music that lasted all night, which caused the hotel, La Playa in Carmel, to ask them never to come back.
